Discounted Cash Flow (DCF) Analysis Levered

Retail Properties of America, Inc. (RPAI)

-13.58 (-%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.48 | 0 | undervalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 583.14538.14482.50481.69430.04398.92370.05343.27318.43295.39
Revenue (%)
Operating Cash Flow 263.75247.52204.16231.49183.17178.87165.92153.92142.78132.45
Operating Cash Flow (%)
Capital Expenditure -51.77-73.75-72.94-75.60-62.91-54.27-50.34-46.70-43.32-40.19
Capital Expenditure (%)
Free Cash Flow 211.98173.77131.23155.89120.26124.60115.58107.2299.4692.26

Weighted Average Cost Of Capital

Share price $ -
Beta 1.759
Diluted Shares Outstanding 213.33
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.995
Total Debt 1,829.70
Total Equity -
Total Capital 1,829.70
Debt Weighting 100.00
Equity Weighting 0.00
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 583.14538.14482.50481.69430.04398.92370.05343.27318.43295.39
Operating Cash Flow 263.75247.52204.16231.49183.17178.87165.92153.92142.78132.45
Capital Expenditure -51.77-73.75-72.94-75.60-62.91-54.27-50.34-46.70-43.32-40.19
Free Cash Flow 211.98173.77131.23155.89120.26124.60115.58107.2299.4692.26
WACC
PV LFCF 119.47106.2794.5284.0774.78
SUM PV LFCF 479.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.29
Free cash flow (t + 1) 94.11
Terminal Value 4,109.39
Present Value of Terminal Value 3,330.92

Intrinsic Value

Enterprise Value 3,810.04
Net Debt 1,787.92
Equity Value 2,022.12
Shares Outstanding 213.33
Equity Value Per Share 9.48